Balanced and Exposure At Default: Difference between pages

Revision as of 14:29, 13 November 2016

Credit risk evaluation - banking

(EAD).

Exposure At Default is an amount expected to be outstanding following a default by a counterparty, taking account of:

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-. ''Treasury organisation.''
+''Credit risk evaluation - banking''
-Balanced is a form of treasury organisation and authority which is a compromise between full centralisation, and decentralisation.
+(EAD).
-Balanced organisation involves the sharing of responsibility between the centre and subsidiaries. Authority moves between centre and subsidiaries on the basis of a continuing dialogue about which party is best suited to make particular decisions.
+Exposure At Default is an amount expected to be outstanding following a default by a counterparty, taking account of:
+*Any credit risk mitigation;
+*Drawn balances; and
+*Any undrawn amounts of commitments and contingent exposures.
-Also referred to as Dynamic balance.
+==See also==
+*[[Default]]
+*[[Expected Loss]]
-. ''Adjective.''
+*[[Loss Given Default]]
+*[[Probability of Default]]
-More generally, taking everything into account and considering all sides or opinions equally.
-== See also==
-* [[Centralised]]
-* [[Decentralised]]
-[[Category:The_business_context]]
-[[Category:Treasury_operations_infrastructure]]